Peabody axes 200 jobs, shuts Wilkie Creek mine

High operation costs and lower market prices will see another 200 jobs cut as US coal giant Peabody Energy announces it is closing its Wilkie Creek mine before the year is out.

The miner said approximately 200 employees and contractors have been told the operation, located in Queensland’s Surat Basin, will close at the end of December.

"We have completed our strategic review of the Wilkie Creek Mine, and we have begun the process of winding down operations," said Peabody Energy Australia President Charles Meintjes.

Peabody said it is calling for voluntary redundancies and will try to relocate a number of workers.

"We thank the employees at Wilkie Creek for their hard work and dedication. We are committed to minimising the impact of the closure on our employees, their families and the local community, and we intend to work with employees regarding redeployment to other operations where possible."

The miner axed 70 jobs from the Wilkie Creek operation in September.

The decision to shut the thermal coal mine comes after Peabody has been trying to sell off the asset for more than a year.

"Peabody's Queensland strategy is to focus on the development and expansion of its metallurgical coalmines and projects in the Bowen Basin," a company spokesperson said.

"The Bowen Basin strategy will allow the synergies and efficiencies of the assets that are located in close proximity to one another to be maximised."

Peabody also cut 400 positions across its 11 Australian coal mines in June.

To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.